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tv   Closing Bell  CNBC  June 26, 2015 3:00pm-5:01pm EDT

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people so full of life and so full of kindness. people who ran the race. persevered. people of great faith. to the families of the fallen, the nation shares in your grief. our pain cuts that much deeper because it happened in a church. the church is and always has been the center of african-american life. a place to call our own in a too too-often hostile world. a sanctuary from so many hardships. over the course of centuries,
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black churches served as hush harbors where slaves could worship in safety. praise houses where their free descendents could gather and shout hallelujah. rest stops for the weary along the underground railroad. bunkers for the foot soldiers of the civil rights movement. they have been and continue to be community centers. where we organize for jobs and justice. places of scholarship and network. places where children are loved and fed and kept out of harm's way. and told they are beautiful and smart and taught that they matter. that's what happens in church.
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that's what the black church means, our beating heart. the place where our dignity as a people is inviolate. there is no better example of this tradition than mother emanuel. a church built by blacks seeking liberty, burned to the ground because its founders sought to end slavery only to rise up again, a phoenix from these ashes. when there were laws banning all-black church gathering, services happened here anyway in defiance of unjust laws. when there was a righteous movement to dismantle jim crowe,
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dr. martin luther king jr preached from his pulpit and marches began from its steps. a sacred place, this church. not just for blacks. not just for christians but for every american who cares about the steady expansion of human rights and human dignity in this country, a foundation stone for liberty and justice for all. that's what the church meant.
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we do not know whether the killer of reverend pinckney and eight others knew all of this history. but he surely sensed the meaning of his violent act. it was an act that drew on a long history of bombs and arson, shots fired at churches. not random but as a means of control, a way to terrorize and oppress. an act that he imagined would incite fear. and recrimination, violence and
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suspicion. an act that he presumed would deepen divisions that trace back to our nation's original sin. oh, but god works in mysterious ways. god has different idea ss. he didn't know he was being used by god. blinded by hatred the alleged killer could not see the grace surrounding reverend pinckney and that bible study group. the light of love that shone as
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they opened the church doors and invited a stranger to join in their prayer circle. the alleged killer could have never anticipated the way the families of the fallen would respond when they saw him in court in the midst of unspeakable grief with words of forgiveness. he couldn't imagine that. the alleged killer could not imagine how the city of charleston under the good and wise leadership of mayor riley, how the state of south carolina how the united states of america would respond, not merely with revulsion, but with big-hearted
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generosity, and more importantly, with a thoughtful introspection and self-examination that we so rarely see in public life. blinded by hatred he failed to comprehend what reverend pinckney so well understood. the power of god's grace. all week i've been reflecting on this idea of grace. the grace of the families who lost loved ones. the grace that reverend pinckney would preach about in his
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service. the grace ascribed in one of my favorite hymnals, the one we all know, "amazing grace." how sweet the sound. that saved a wretch like me. i once was lost, but now i'm found. was blind but now i see. ♪ according to the christian tradition tradition, grace is not earn eded.
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grace is not merited. it's not something we deserve. rather grace is the free and benevolent favor of god. as man found in sinners and bestowed its blessing. grace is a nation out of this terrible tragedy. god has visited grace upon us. for he has allowed us to see where we've been blind. he's given us the chance where we've been lost to find our best
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selves. we may not have earned it this grace with our rancor and complacency, short-sightedness and fear of each other, but we got it all the same. he gave it to us anyway. he's once more given us grace. but it is up to us now to make the most of it to receive it with gratitude and to prove ourselves worthy of this gift. for too long we were blind to the pain that the confederate flag stirred in too many of our citizens. it's true a flag did not cause these murders. but as people from all walks of
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life republicans and democrats now acknowledge, including governor haley whose recent eloquence on the subject is worthy of praise. as we all have to acknowledge, the flag has always represented more than just ancestral pride. for many that flag was a reminder of systemic oppression
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and racial subgugdugation. removing it would not be an insult to the valor of confederate soldiers. it would simply be an acknowledgement that the cause for which they fought the cause of slavery was wrong. the imposition of jim crowe after the civil war, the resistance to civil rights for
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all people was wrong. it would be one step in an honest accounting of america's history. a modest but meaningful balm for so many unhealed wounds. it would be an expression of amazing changes that transformed this state and this country for the better because of the work of so many people of good will. people of all races striving to form a more perfect union. by taking down that flag we express god's grace. i don't think god wants us to
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stop there. for too long we've been blind to the way past injustices continue to shake the present. perhaps we see that now. perhaps this tragedy causes us to ask some tough questions about how we can permit so many of our children to languish in poverty, or attend delapidated schools or grow up without prospects of jobs or career. perhaps we ought to examine what we are doing to cause some of our children to hate. perhaps it softens hearts to
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those lost young men, tens of thousands caught up in the criminal justice system and lead us to make sure that system is not infected with bias that we embrace changes in how we train and equip our police so that the bonds of trust between law enforcement and the communities they serve make us all safer and more secure. maybe we now realize the way racial bias can infect us even when we don't realize it so that we are guarding against, not just racial slurs, but we are also guarding against the subtle impulse to call johnny back for a job interview but not jamal.
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we search our hearts when we consider laws to make it harder for some of our fellow citizens to vote. by recognizing our common humanity. by treating every child as important, regardless of the color of their skin or the station into which they were born and to do what's necessary to make opportunity real for every american. by doing that we express god's grace.
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for too long -- for too long we've been blind to the unique mayhem that gun violence inflicts upon this nation. sporadically our eyes are open. when eight of our brothers and sisters are cut down in a church basement, 12 in a movie theater, 26 in elementary school but i hope we also see 30 precious lives cut short by gun violence in this country every single day
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the countless more whose lives are forever changed. survived crippled. children traumatized every day as they walk to school. the husband who will never feel his wife's warm touch. the entire communities whose grief overflows every time they watch what happened to them happen to some other place. the vast majority of americans, the majority of gun owners want to do something about this. we see that now. i'm convinced by acknowledging the pain and loss of others even as we respect the traditions, ways of life that make up this beloved country, by making the moral choice to change we express god's grace.
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we don't earn grace. we're all sinners. we don't deserve it. but god gives it to us any way. it's our decision how to honor it. none of us can or should expect a transformation in race relations overnight. every time something like this happens, somebody says we have to have a conversation about race. we talk a lot about race. there's no shortcut. we don't need more talk.
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none of us should believe a handful of gun safety measures will prevent every tragedy. it will not. people of goodwill will continue to debate the merits of various policies, as our democracy requires. it's a big raucous place, america is. and there are good people on both sides of these debates. whatever solutions we find will necessarily be incomplete. but it will be a betrayal of everything reverend pinckney stood for, i believe, if we allow ourselves to slip onto a comfortable silence again.
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. once the eulogies have been delivered, once the tv cameras move on to go back to business as usual. that's what we so often do. to avoid uncomfortable truths about the prejudice that still affects our society. to settle for symbolic gestures without following up with the hard work of more lasting change. that's how we lose our way again. would be a refutation of the forgiveness expressed by those families if we merely slipped onto old habits whereby those who disagree with us are not merely wrong but bad. where we shout instead of
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listen. where we barricade ourselves behind preconceived notions. or well-practiced cynicism. . across the south we have a deep appreciation of history. we haven't always had a deep appreciation of each other's history. what is true in the south is true for america. clem understood that justice grows out of recognition. of ourselves and each other. that my liberty depends on you being free too. that history can't be a sword to
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justify injustice. or a shield against progress. it must be a manual for how to avoid repeating mistakes of the past. how to break the cycle. a roadway toward a better world. he knew the path of grace involves an open mind, but more importantly, an open heart. that's what i felt this week an open heart. that more than any policy or analysis is what's called upon right now, i think. a friend of mine the writer marilyn robinson calls that reservoir of goodness.
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beyond and of another kind. that we are able to do each other in the ordinary cause of things. if we can find that grace, anything is possible. if we can tap that grace, anything can change. amazing grace. amazing grace. snowed ♪ amazing grace ♪
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♪ how sweet the sound ♪ ♪ that saved a wretch like me ♪ ♪ i once was lost ♪ ♪ but now i'm found ♪ ♪ was blind but now i see ♪ clementa pinckney found that grace.
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cynthia herd found that grace. suzy jackson found that grace. ethel lance found that grace. depayne middleton doctor found that grace. daniel l. simmons sr. found that grace. cheronda coleman singleton foind that grace. myra thompson found that grace. through the example of their lives. they now passed it on to us. may we find ourselves worthy of that precious and extraordinary gift, as long as our lives endure. may grace now lead them home. may got continue to shed his grace on the united states of america.
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reverend obama with a rousing eulogy for reverend clementa pinckney as well as the others killed in that church at the ame church in south carolina. we continue our market coverage. we pause for this moving eulogy. we have eamon javers standing by at the white house. this has been a watershed week for a number of issues but the president brought up two of them
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that have found new life there in charleston and other parts of the south. that would be race relations and gun violence. >> emotional and powerful remarks from the president of the united states. talking about an emotional core of his speech focused on grace here. the idea of the grace showed by the families of the victims who told the alleged killer they forgave him hours after the killings. and the grace shown by political leaders in south carolina who lowered the confederate flag as a gesture of respect and reconciliation. the president buttoning up here what has been an amazing day in his presidency. he began the day in the white house residence where he was writing this eulogy at the time the supreme court decision on gay marriage came down. a sense of the coming together behind the scenes here in the white house and in political washington. we saw speaker of the house john boehner flew on air force one today with the president to
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charleston for the funeral. the white house saying this is the first time the speaker of the house, a republican had flown on air force one with the president of the united states. maybe a small reconciliation there, too behind the scenes. >> you mentioned the taking down of that flag the confederate flag. he referenced there, president obama said "i don't think god wants us to stop there." what do you think happens next for those trying to figure out what to do with similar images displayed across the south. >> that is a tricky and dicey and devisive issue. it has been for a very long time. the president seemed to be clearly saying we shouldn't just focus on this issue of flags and symbolism but focus on gun violence. that is an issue that has been a nonstarter in washington after we've seen mass shooting after mass shooting after mass shooting during obama's presidency. washington has been unwilling or unable to come to any consensus what to do about gun violence and gun control. there are a lot of people who feel strongly the second amendment allows people to have
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the right to bear arms. that debate doesn't seem to be about to change here in washington, d.c. the president clearly saying he thinks it ought to and making a political call during the speech. interesting to note speaking of politics here in a moment of somberness, the president reaching out and saluting the words of nikki haley the governor of south carolina talking about bringing that confederate flag down. a tip of the hat there from a democratic president to republican governor in south carolina. >> thank you very much. eamon javers from the white house as we wrap up our coverage in charleston south carolina in what has been a remarkable day, as you mentioned, for the president and people there in charleston. >> "closing bell" will continue.
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big savings and interest-free financing? these deals aren't just hot, they're explosive! sleep train's 4th of july sale is ending soon! ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ welcome back. less than a half hour to go in the session to close out the
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week. unusual volume is anticipated. especially with the russell rebalancing taking place. art cashin joins us and john brady and rick santelli. welcome to all of you. art cashin, what do you anticipate in this last half hour? >> right now the dow and standard and poors looks paired off. things will turn frantic in the final 15 minutes when we go onto the rebalancing mode. a few surprises will pop-up and people will look for those imbalances and try to find an offsetting way to pair them off and make for as little as possible price movement. >> why do they do the rebalancing?
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>> companies can buy back their own stock that. changed their relative waiting in where things start. you can have stock splits and a variety of other things. if your representation within the index begins to move and/or they bring in new items, they've got to make an adjustment. the russell tries to do it once a year and that makes it a big oechbt. several other indices we see on month end or quarterly end happening over the course of the year. >> what or where are you guys buying this afternoon? >> our focus has been on the treasury market. the bond market sold off hard today. the attention for the bond market takes place with greece this weekend. the bond market seems to be saying the odds are relatively high begin the move to higher yields that we'll probably see some kick the can measure out of
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euro zone finance ministers saturday sunday with the idea the risk assets will probably do better short term and bonds will sell off. the euro zone will kick the greece can down the road. >> there is talk they are working on some provision to take them to the end of the year where they can restart those talks again. rick santelli these yields taking us back to levels we haven't seen since last fall. what does that tell you about the 10 and 30 year today? >> when we combine what john said, we need to look at the difference between yields 10 to 10 bunds, 30 year bonds to 30 year bunds remained constant for june. they seem to have led. john's right. greece may be moving the fixed income market but moving the european fixed income market and we are following the european fixed income market. that said technical forces and illiquidity are going to take over quickly.
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this will be a new high-yield close on the 30-year bund and 30-year bond. the old lever was 3.22. we are 3.25. that's up 20 bips on the week. it's going to be a close call. 2.48 the last yield. around 2.485% going back to the fall. all these will be important. 2.60 is a level we are going to see in 10s. it will be significant whether the market is contained by that point or not. >> john monday what are the two scenarios investors could be walking into? >> greece kicks the can down the road. there is a short-term relief rally, but investors are going to get paid to pay attention with spanish and portuguese bonds. the other scenario they push negotiations further back which risk assets probably sell off modestly in disappointment. >> art you said it starts around
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45 past the hour. how much volatility? >> i think there will be some frenzied volatility probably between 3:45 and 3:55. hopefully as we move into the close, things are accommodated and we slow down a little bit. >> we'll see what happens. appreciate it. have a good weekend. >> the picture is not pretty in china, as well. shanghai composite falling 7% overnight. down about 18% since it reached its high on june 12th. it's very close to what we would call bear market territory. what does this mean for the markets in the u.s.? joining us jonathan bronski and simon maile. they had a great run. they are down 19% right now. should we panic or what do you
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think is going on? >> from a valuation perspective, shanghai and shenzhen have been flashing caveat emptor signs. if you see a prolonged decline, what the impact that will be on retail investors in china and overall economy. we see that being a risk. the government had somewhat of a tacet involvement in this supporting the markets, trying to create the wealth effect. if you see a prolonged decline, the issue is does that have an impact on the real economy? >> simon, this correction seems to be happening more quickly than perhaps you anticipated, no? >> it's happening, but i've been saying i thought the market was overvalued. i would agree that the real risk is whether this has an impact through the wealth effect on the chinese economy. to that i would say two things. if you look at the market on the way up we had more than doubling of the stock market over the last year.
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if you look at what happened to retail sales, retail sales were only up 10% year on year. the wealth effect on the way up wasn't there. why is that? quite simply only about 7% of chinese investors or chinese individuals are set up to trade stocks. the market gains and market speculation you've seen has been heavily concentrated in the hands of a few wealthy investors who have been using margin. if you see a complete meltdown yes, there is clearly a risk a few high wealth retail investors get wiped out. yes, that could have a very limited impact in terms of overall consumption. that impact will be on luxury consumption. the risk to the global markets is where the increasingly multinational companies doing business in china can be hurt like that, whether it will be the mcdonald's, the apples porsche, those companies. because of the concentration at the luxury end of the market i
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would say no. i think that's not a very real risk to the global markets. i would say what we see in china is going to remain very much a chinese domestic-contained den eded phenomenon. >> thank you very much. our markets largely shaking it off. we've got real volatility in the next 20 minutes. s&p is fractionally lower on the session. nass the dow is still up 57. >> it is all nike. that gain right there. i was saying earlier on twitter, nike is carrying the dow the way lebron james carried the cavaliers through the playoffs. >> maybe a cautionary note there for investors to take note of. elon musk making a big bet on china. we are going to delve into the car maker's future.
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there are tough choices ahead for microsoft. at least that's what the ceo wrote in an e-mail to his employees yesterday. he wrote "we are in an incredible position to seize new growth this year. we will need to innovate in new areas, execute against our plans, make some tough choices in areas where things are not working and solve hard problems in ways that drive consumer value." >> joining us is tim lesko. his firm owns shares of microsoft what about this memo? is this the vision you want to see from microsoft? >> it was a decent mission. when you have a company that has over 100,000 employees, you need a mission to have everybody pulling the oars in the same direction. i was disappointed it became public information quickly. i would rather see this be an internal memo and microsoft let us know where the firm is looking out three, five years.
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>> when you have 100,000 employees, that's likely to happen. >> right. it's probably important internally they communicate with the people. >> specifically where do you want to see -- he wants to innovate. he wants to create customer value. where do you think he can best do that effectively? >> i've always thought they should say we're microsoft we are good at business and concentrate on delivering a compelling business software platform to the world. that's kind of where i always thought they should be and leave the consumer and gaming stuff behind. >> exactly. on that point what about some of the devices here? should they double down in emerging areas of the market or leaving that to leaders of the field? >> thls they can produce enough devices to spread around the world, leave it to oem partners.
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i'm interested in the software side of things. otherwise you are diluting your suppliers and people using your software trying to create your own products as well. >> fair enough. thanks tim. >> we are inside the period where the rebalancing will begin. we might see volatility. we will certainly see volume pick up here. right now the dow is up 55 thanks to the gain in nike. s&p is lower. nasdaq down 32 points. >> if it's friday it must be david darst. the street veteran giving us his take on the rebound and what to watch for in the second half of the trading year. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it track my crew's performance, and protect their heads? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ at cognizant, we see opportunities
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ten minutes left in the trading session. we are showing you the three major averages. dow up 49 s&p down one. we should show the russell 2000 since that's what's going on right now on the floor of the new york stock exchange with all the rebalancing occurring over the next ten minutes. >> art cashin indicating there is about $1 billion to sell on the close here. vix is slightly higher.
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we have david darst joining us here on fridays as he does. >> nice to be here. banks are up about 6% and the russell 2000 is up 7% for the year. that's indicating the economy getting better inflation expectations may be picking up. interest rates rising. that helps the banks. the russell 2000 is an indication for the domestic economy. durable goods orders factory orders, the chicago purchasing managers index, those are lagging because the exports and manufacturing sector hasn't been there. the consumer is coming to life. new home sales. existing home sales. jobless claims below 300,00016 weeks in a row. consumer sentiment, all these things lifting up. what we've got to see the
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missing helen of troy at this feast is profit. wall street consensus 119. normally strategists are above the analysts. once they start to lift the market can lift. without that there is no helen of troy and no launching of 1,000 ships. >> speaking of helen of troy we are watching greece and negotiations there. so far right now the biggest impact has been in the credit markets. our own treasuries selling off in conjunction with the european credit markets. assuming they get some deal whether it's a stop gap measure or something more comprehensive what would you do? somebody said buy european stocks. would you agree with that? >> i would agree with that.
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my feeling is all the viewers watching this show if anybody is a nervous type investor you should basically maybe take off the table because if they don't work something out, my best guess is they kick the can down the road. it's possible they might not do that and you can see volatility spike. you can see bond yields go up and perhaps contagion over here to the united states. you've got to be careful about the greek situation. they ignore that and china. >> briefly put, you don't think it poses a risk to the u.s. markets? >> i cannot say the words evans briefly. ipos margin buying lack of
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profits over there, china is basically, we took morgan stanley's jonathan garner took it off from overweight to equal weight. he says it's likely that it will not trade back to this old high. it's around 4,000 now. 4,000 to 4800 is a trading range for china. china and greece don't have much impact. helen of troy is profits. >> hashtag darst. >> i can't believe you did the hashtag thing. >> briefly put. >> up 52 points as we head to the close. we'll come back with the closing countdown and rebalancing under way. >> after the bell u.s. supreme court issuing a landmark decision ruling same-sex couples have the constitutional right to marry. coming up what it means for american business with trevor burgess, first openly gay ceo of a publically traded bank. you are watching cnbc, first in
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less than three minutes to go here. the dow being buoyed by nike. nasdaq down. let me see the russell. the rebalancing is under way. volatility here as we head toward the close. show us how it's working. >> the important thing is this is the yearly rebalancing of the
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russell 1,000 and 2,000. a lot of companies are reweighting. a number of companies have been buying stocks back. they are getting weightings reduced. some added stock. hilting's weighting is increasing. there is probably another 4 million, 5 million shares. almost 10 million shares traded in hilton. already we are seeing a lot of volume. exxon has been buying back stock all year. the weighting is going down.
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exxon normally would trade 4 million, 5 million. the object of all of this is trade a lot of stock, but don't move the price because it shouldn't move. prices should move on fundamentals, not just because it's going in or out of an index or increasing its weighting. the designated market makers want to push through a lot of stock to buy and sell on both sides. but don't want to change the prices. so far, exxonmobil has been right around this price all afternoon. i don't see any dramatic move here. we've got another minute or two. that will matter. >> cashin was saying there was about $1 billion to sell. that was the imbalance. i suspect because of the rebalancing, a lot will be paring off here. >> you are going to see a huge rush in volume. normally we'll do about 600,000, 700,000. >> million. >> excuse me. 700 million, you're right. i wouldn't be surprised if we did well north of a billion, maybe even 1.2 billion.
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>> have a good weekend a lot to come here. business implications on the supreme court riling on same-sex marriage today. what will happen in greece? that's coming up next. have a good weekend. >> thank you, bill. welcome to "closing bell." i'm kelly evans. what a week. here is how we are finishing up the session on wall street. seeing if it affects the activity we saw. it looks like the dow will go up with a gain of about 58 points. we'll update you if that moves substantially one way or the other. s&p 500, nasdaq are going out in the red. down about a point, 31 points respectively. if it weren't for nike's outperformance, the dow might have joined them in the red on
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the session today. 17,948. a lot of individual movers and news. joining me at post nine cnbc contributor evan newmark and courtney reagan. and ross gerber and "fast money" trader tim seymour. ross a strong session for nike today. stocks otherwise couldn't seem to do it. >> it's been doing this at the end of the month where stocks roll over the last couple of days of the month then restart at the beginning of the month. i'm not sure if that's technical or not. i'm not worried about that. there are people taking money off the table because they are scared of greece which, who knows which way this will go? i see the conservatism being prudent but i think the rally is intact. >> you were up at the nasdaq. what a session for micron. they come out with earnings. we reported it yesterday.
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the initial response is positive on a beat. they get into the outlook. as john fortt was saying he can't understand it. it's down 17%, down 18% today. >> taking a big bite out of the nasdaq. the 100 and composite, then dragging down other stocks like intel. also names like microsoft, too. micron said we are seeing low demand for our chips and pcs. there are a lot of players for impact. a lot lower today. >> tim, you like nike here. that story is working well what about this pc-sensitive space? do you think the selling is overdone? >> on a day after you see a fallout effect across the chip space. chips have been under pressure. i'm surprised at the severity of the move. except micron are in a sector where increasing supply and capacity by a lot of their peers mean not only is there pressure on demand side but incredible
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pressure on supply side. seeing intel pull back in sympathy, okay. i've been saying i think intel is probably priced a lot of this in. trades 20% cheap to a lot of guys in the space. not surprised to see this move today. you might see opportunities next week. >> they were down almost 3%. the real story of the week might be with little notice strong economic data. >> yeah. strong economic data and very poor performance from bonds. the only way you would have made money over the past month, 2 1/2 months is by shorting bonds, which as you know we discussed, ad nauseum. i won't go into a lot of detail. what i will say about micron's performance, interesting little story i picked up the last 24 hours. you want to hear it? >> i do. >> you know molly corp?
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filed for bankruptcy. it was one of your fast money stocks of the year like five years ago. it was a stock that was talked about on cnbc all the time. went from zero to 6 billion market cap. now it's $6 billion in debt. there are stocks like molly corp floating around the stock market right now. >> where do you look today? >> it's money chasing hot stocks. that still happens today. it happens in the biotech sector. it's a good cautionary tale to all the people who think they can hit a home run fighting that one stock. >> micron was up 150%. >> micron was touted on cnbc for a long time. i heard a rumor regis philbin
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might put in a bid for the whole company. i don't know if that's true. >> tim, get in here. >> i think regis, to his credit was buying micron in the single digits. there's a lot of stocks -- i agree with evan you have a place where biotech stocks look frothy. they are doing it not only in individual names but ibb. no question when you see the fund flows the last two weeks, you've seen $15 billion out of bond funds and bond etfs into equities. people think this is a one-way trade where all assets are pulling back. today's performance tells you there are selective places to make money. just because nike and facebook are at highs at the top of the cycle doesn't mean it's time to sell everything. >> hold those thoughts. kenny, it looks like from the numbers we had a big pop in volume. what are you seeing in terms of rebalancing trades? >> we doubled the volume last
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minute. we traded about 640 million shares. we just ticked over almost 1.5 million. we more than doubled the volume in the last minute. that is just because of as everyone has been saying this russell rebalancing caused these massive executions in stocks. in that sense, there is nothing to read into the explosion at volume. that is just as a matter of fact. beyond that as exciting as it is on a russell rebalance. >> are you making ross any particular trades around this rebalancing? or this is a temporary effect? >> it's a temporary effect. i thought a point mentioned earlier is important. you've got to get out of bonds right now. we are heavy in cash. what would normally be 40% bond allocation is only 20% bonds and 20% cash. we are losing money on bonds. we are making money in the stock market. you've got to be in your top
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names because there is money being made right now. we have great returns with that strategy. >> as everybody knows, the sentiment, retail sentiment about stocks continues to be at almost historic lows. what changes that? >> the 10 at 2.50% to be at the top of the range. as much as i think the data was good this week and rates are going higher how much higher can they go in this period? to be buying bonds aggressively -- excuse me selling bonds aggressively, i think you have to be cautious here. >> fair point. >> it's not a great risk/reward. >> how do you know it's 10%? >> one at a time. >> most retail investors should not be trying to pick stocks. that's something we talked about ad nauseum. >> that is exactly what they
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should be doing. >> no. >> for long term? >> buy an index fund and forget about it. for most retail investors, that makes the most sense. morningstar came out with another study the last couple of days. guess what? active fund managers have yet to make their case. maybe when that happens. >> you are making their case right now. how can you say that? >> speaking of specific stocks let's get dominic chu into the mix. >> us and our friends at cnbc pro took a check at our weekly top stocks. subscribers can go on there. the best performer this week in the major indices, nike up 3% this week. the company posting better than expected earnings for the eighth quarter in a row. stock is by far the biggest booster for the dow, contributing about 30 points to
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the move overall. as for the top performer in the s&p 500, that prize goes to williams companies. the natural gas pipeline giant rejected a nearly $50 billion buyout offer from energy transfer equity. the bid significantly undervalues williams but is open to other offers. shares traded at an all-time high monday. they are up 19% this week. nasdaq 100 top perform erer is facebook. it's now valued around $238 billion. walmart valued at around $240 billion. facebook has been on a roll. shares up 13%. quarterly results consistently surpassed expectations. social media a big part of the nasdaq 100 story. cnbc proscribers can get more by logging on to
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>> good stuff. kenny, you are seeing evidence these names or stocks are getting more interest here. we are watching flows, heading into month end. >> i think they are getting more interesting. i think the second half of the year is going to be much better and more exciting than the first half. yes, we'll see higher rates. yet we are still at such artificially low rates, i don't see why people are panicking in the equity market. we are not talking about rates being 8% 10%, we are talking about 0.5%. >> it's bullish. the market has not moved in five months. >> the panic is the talk about investors getting nervous, rates going up. that's baloney, i think. >> panic when people stop dumping stocks. >> i agree. i don't think there is at all.
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>> tim seymour, last word? >> i look at data this week. u.s. consumer spending numbers doing very well. facebook. this is why this company is going up. they have significant business in the owned and operated instagram. this stock hasn't been on a straight run. it pulled back consolidated and broke out this week. facebook, i like that one. >> i agree. >> great to see you. there is much more coming up here at "fast money" at 5:00 with tim and the gang. they'll be talking about outperformers and impact the russell rebalance had. supreme court ruling same-sex marriage legal and businesses applauding their decision. the economic impact of marriage equality when we speak to the first openly gay ceo of a publicly traded bank. tesla sales hitting the skids in china. find out how the electric car
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maker can fix its china syndrome. (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck.
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welcome back. here's a look how we finish with
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a billion shares on the close amid that russell rebalancing, as art cashin told us. the dow did finish higher thanks to nike up 4%. s&p and nasdaq lower on this session. you are looking at a live shot of harvey milk plaza in san francisco where people are celebrating legalization of same-sex marriage. supreme court deciding 5-4 in favor with justice kennedy saying gay and lesbians couples have a fundamental right to marry. companies also sounding off on twitter with their support. apple ceo tim cook tweeting today marks a victory for equality perseverance and love. target, here's to having holding and marrying who you love. american airlines tweeting we're on board. diversity strengthens us all. today we celebrate marriage equality and the landmark scotus decision. jpmorgan, love wins, just be you. trevor burgess, ceo of c one
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financial, the first publically gay ceo of a publicly listed program. your reaction to the decision this morning? >> this is a fantastic day for america and fantastic day for american business. any time we can have consistent laws across the country makes it easier for business to take place. i think about my own family and what we had to go through, estate planning complex and expensive before this ruling. now we are treated with the dignity all americans are across this country. that's good for business. >> you bring up again a lot of what this means. people who have a defined marriage. right now there are a lot of provisions written to give benefits to couples who aren't married to protect same-sex couples. any danger of those going away now that everybody will be recognized having the right to marry? >> i think it's just that patch work of laws rules, regulations and make shift attempts to try
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to create equality. it's so great that today we can celebrate that all of that can go by the wayside. >> for the banking business what practical implications do you think this will have? >> i think there are two main implications for the banking business. the first one is in terms of recruiting. when i first came to florida before i created this $1.6 billion institution i have florida did not recognize my marriage from the state of massachusetts. that made it difficult not only for me to think about moving to florida, but it made it difficult for me to recruit other gays and lesbians from across the country because they weren't sure how valid or would their marriage be recognized. now from a recruiting standpoint, that question is off the table. the second impact is the consistency of laws. if we are trying to buy property in a state that didn't have
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marriage equality how are my husband and i supposed to be listed on that deed? all of those questions are now gone today. >> i was going to raise the latter one especially. not just with buying property but estate planning other benefits that might be conferred. is this something your bank can play a role in or are you not in the wealth management planning advisory areas? >> we are a commercial bank. i trademarked it. we call it banking by entrepreneurs for entrepreneurs. we are focused how can we help florida businesses grow. there are a lot of florida businesses that are owned by gays and lesbians. we had to work very hard over the past several years to try to make sure we can serve them in a first class way when the law hadn't caught up to it. today that's all over. it's easy simple dignity under the law for everyone. >> you are married. so this doesn't have that impact for you, but i'm sure for a lot of people.
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perhaps depositors included. there will be family planning business that comes as a result of that. >> i'm most excited for my daughter though. she is nearly 6 years old. she now gets to grow up in america where she knows that her dads will be treated with dignity under the law. that's a great america. i'm very excited that the american dream is open for all. >> trevor thanks for joining us this afternoon. >> thank you. >> trevor burgess ceo of ci bank. tesla having trouble selling cars in china because they are afraid the cars will run out of power. will this keep tesla stuck in neutral? also major league baseball stepping up to bat in a streaming wars with possible ipo of its prize technology business. this could be a game changer how you watch everything from sports to movies.
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tesla souping up its plans for china establishing seven supercharging networks in the second half of this year after concerns over vehicle traveling range. data released by jl warren capital revealing only 163 units of the model s sedan were shipped to china in may down from 414 over the past 12 months. for more let's bring in roberto
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baldwin and our panel. welcome to you. how troubling is this report? >> whenever you have something new, you have to be concerned about it wearing off. everyone gets excited about a new product. tesla needs to invest in that infrastructure if they want to keep selling cars. >> in the u.s. they made a big deal about the ability to travel in new york to los angeles and being able to charge the car. have there been similar efforts in china to explain the availability of charging stations, if they are available? >> tesla, their reach out to customers is spectacular. any company that wants to grow needs to invest in china. they are reaching out, talking to people and getting the superchargers out there will hopefully help them start selling more cars.
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>> the question i have is around who is the target market here? if you look at china, this is aimed at a tiny tiny percentage of ultrawealthy chinese. just as tesla in the u.s. >> is it though? they would love it to be aimed at everybody. >> in a country with a population 1.5 billion or so they are selling 140 a month. by definition it's a niche market. >> is the brand positioning off? are they targeting or mistargeting the wrong group? not only do they not only understand the infrastructure do they understand what it means? we love it in the u.s. do chinese consumers understand that? >> i think it's a luxury brand. the middle class is growing in china. the upper class is also growing. they are trying to get in before mercedes-benz and bmw and other high-end dealers get in there.
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china has been rife with counterfeit vehicles for years. if tesla wants to get ahead of that, they need to get onto that market. >> i wonder to what extent more sales in the u.s. will help its image everywhere. even here we are not necessarily -- looking at this report of general motors adding to the market. >> i don't think elon musk is losing sleep about the bolt. it was the precursor of the volt which you remember -- you probably don't remember. that was a giant waste of time and money. he is not worried about gm. >> my point is gm helps him. the more people in this space, the better for tesla. any other chinese competitors in china? >> right now, tesla can take off if they know what they are doing. you have to make sure you're
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marketing culturally. you can't market like you do here in the united states. there is a concern about range anxiety. people talk about how it's not an issue, but it is an issue. if i'm going for a drive and beijing is huge i don't need my car to break down because i couldn't charge it anywhere. >> you also look at tesla as more than just a car company, a technology company. given these weaknesses do you expect other technology where they have to get more revenue in the future? >> they need to step it up. they are really a battery company. they are building the giga factory in nevada. good word of mouth here in the united states sometimes will translate into china. if they can really -- if they can make the united states fall in love with electric vehicle with gm's help with the bolt other countries are going to follow suit.
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>> just a final point. >> are you going back to the driverless cars? you love the driverless cars. >> we are saving that for later. right now you bring up the point about the ultrawealthy. >> holes is buying it in china? >> even in china, the crackdown on conspicuous consumption has been hitting luxury products. i wonder if their timing is off. >> it might be. it's cheaper to buy luis vuitton suitcase. >> even that's not kosher. >> if you tell people no con conspicuous consumerism. it's tough to crack down on being cool. >> roberto baldwin, thanks for joining us. news alert on twitter with julia boorstin.
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>> twitter ceo departure. the man responsible for periscope, telepart niche and top commerce in his time at twitter. he was only at the company for about 13 340s. before that he was m&a chief for jack dorsey's square. we can probably expect more turnover of executives from twitter in the wake of costolo leaving. >> we'll keep an eye out. thank you. time for a cnbc news update with sue herera. >> good afternoon. president obama delivers a moving and emotional eulogy at the reverend clementa pinckney's funeral in charleston saying he was a good man. at the end of the eulogy he led the thousands in singing
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"amazing grace." ♪ amazing grace ♪ ♪ how sweet the sound ♪ the state department says there is no evidence so far the terrorist attacks in france tunisia and kuwait were coordinated. nbc news has learned there is a heightened state of concern about an isis-inspired attack in the u.s. during the fourth of july holiday weekend. >> disney is banning selfie sticks citing safety concerns. guests will be checked for the novelty item during routine bag checks. it goes into effect june 30th. >> donald trump responding to univision sending a letter that said in part "please be advised under no circumstances is any officer or representative of univision allowed to use trump national doral, its golf courses
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or any of its facilities." back to you, kelly. >> i can't believe they are banning selfie sticks at disney. i see them everywhere. >> that is the best news. >> it's because somebody got hurt when somebody took it on a ride and the selfie stick went back and hit somebody. that's one of the reasons. >> they are dangerous poking out. thanks a lot, sue herera. the world dealing with a trio of terror attacks in france tunisia and kuwait. up next the latest on the attacks and why they didn't seem to impact the market.
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welcome back. quick check of markets here. huge volume on the close. it was the single biggest volume day for the new york stock exchange this year. that's because there was a russell rebalancing. it was nike shares that had the outsize impact on the dow. that company up 4%. dow adding 56 on the session. nasdaq deeply in the red on micron disappointment across the pc space. s&p giving up just under one point. let's get out to breaking news on ebay with kate rogers. >> e ba i's board of directors has approved the completion of ebay and paypal separation.
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we've known about this for some time. the release says the distribution of paypal stock is expected to occur on july 17th. as you can see, ebay is down about 1% in the after hour. >> it's official. breaking news on the escaped prisoners in new york. >> we can tell you nbc news is reporting through jonathan dienst and pete williams richard matt has been shot. no word yet from nbc news on his condition. you will recall it has been 21 days of an intense manhunt for richard matt as well as his partner, if you will david sweat who broke out with him. now nbc news according to jonathan dienst and pete williams are reporting from a law enforcement source that richard matt has been shot. we'll keep you posted on his condition. we don't know what that condition is. there are various reports about it. it has been a very intense
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21-day manhunt. back to you. soon as we get more on his particular condition, we will bring it to you. >> did they say anything about his partner or location? >> we did not know if they were together. we do not know if they have been traveling together. the assumption has been they are traveling together because several dna hits they've gotten in various cabins matched both of the suspects. however, we have no information right now as to whether they were traveling together. we only know nbc is reporting matt has been shot. >> we'll leave it there for the time being. thank you. terrorists struck today on three continents. attacks in france tunisia and kuwaits. dozens killed and more than 200 injured. state department saying it's unclear if the attacks were coordinated. isis is urging followers to make ramadan, quote, a month of disaster. we are beginning the holy month
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of ramadan right now. isis killed another 150 civilians in syria. helene's background includes constituents at council of foreign affairs and cia. >> thank you for having me. >> understandably perhaps u.s. government not saying anything about coordination. this can't be a coincidence? >> no. they called for attacks during ramadan. they occurred around the same time horrific attacks. we have several weeks to go. everyone is very nervous. >> is there any indication about what further form these attacks might take? >> what's been worrying is we are seeing friday prayer attacks in the gulf. we had the attack in kuwait on a shiite mosque. a couple of weeks ago we had back-to-back attacks in saudi arabia in shiite mosques. it looks like one tactic is to plan sectarian tension in the regions. they are going after shiites. it's an inflamed region because
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of yemen and syria. everyone is very rattled. >> are there any implications outside of the particulars in the countries where it takes place? i only mean if you think about tunisia, where does tunisia fit? it's terrible, a tragic event, these are innocent civilians, tourists, but outside of tunisia does it have any major repercussions for the markets? for oil? >> in terms of iraq it was iraq a year ago that everyone got concerned. oil went up to $107. people feared there would be isis attacks on iraq. when it didn't materialize everyone said it point happen. they are attacking areas around oil facilities. the eastern province of saudi arabia is where they are located. they have to hit one facility and the market will be rattled. the market has been complacent. >> how important would be the priority to hit an oil field versus an american target with the big holiday coming up?
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>> isis seems to go after westerners and shiites. in iraq they have attacked northern energy infrastructure. we did have an attack in northern algeria on a gas facility. it could easily happen. i don't think bee should be complacent it will never happen. in europe this was a chemical plant in france. if that destroyed the facility people would have been more nervous about commercial implications. >> will these new round of attacks combined with the iranian negotiations with whom we are a quasi-ally. >> i think it will be a 2016 story. the earliest you'll get those barrels back the markets are watching it closely. it could add to the oversupply narrative out there.
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>> did we see this with al qaeda? >> this is something people are worried about. this is an al qaeda tactic. we also have isis and al qaeda in yemen. that is another group we have to be concerned about. we are dealing with two extremist groups in the region. >> violence in somalia, would you link that with all of this? >> boko haram. >> do they take inspiration from these groups? yes. is there command and control? probably not, but the groups could link up. >> appreciate it. >> thank you. major league baseball taking a swing at streaming wars. their technology division may go public. it could be a strikeout for reach noll sports networks. self-driving cars. >> there we go.
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>> first the robotic road warriors got onto accidents and may be exhibiting signs of road rage.
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welcome back. more breaking news on the escaped prisoner in new york. >> nbc news now says that two senior new york state officials are telling them richard matt has been shot and is dead.
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he has been shot by police and is dead. that is according to two senior new york state officials telling our nbc news colleagues. as you know it's been a 21-day hunt for these two escapees. we do not know whether they were traveling together or whether they have been separated. the search in the last day or so has been focused on malone new york. that's significant because it is so close to the canadian border. the 1:00 p.m. eastern time briefing, new york state police offings estimated they thought these escapees could have been as close as ten miles from canada. they weren't going to say they were on the verge of getting to canada. they gave a ten-mile radius. they've been focusing about 1100 officers from various departments in malone new york and that surrounding area trying to get ahead of richard
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matt and david sweat, trying to keep them from going into canada. canadian officials have been notified of the fact that new york state police thought they were headed towards canada. there has been cooperation between canada and the united states. once again, nbc news reporting that richard matt is dead shot by police. >> "the new york times" saying this was in franklin county. about 50 miles from clinton correctional facility where the convicts did escape. >> it is in that particular county. the township is malone in new york, which is in that county. the estimate is between 30 and 50 miles from the correctional facility. one officer this afternoon was surprised they were able to get that far because that is very wooded and rugged terrain,
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unless that's also hunting country, unless they were using trails that had already been cleared out. there was speculation that perhaps is one of the ways they were able to traverse such rugged territory. >> i don't understand why the dogs weren't able to sniff their trail. this isn't new york city this was a remote area. you would think it would be a straight forward task for these animals. >> do you know a lot about hunting dogs? >> yeah. i know they hunt. >> the problem early on was there was so much rain in that particular part of new york state that the dogs lost the scent and the scent was very weak. that's why the dna and the things they found in the hunting cabin were so very important because they were hopeful that despite the inclement weather, the dogs would pick up the scent again. to your point, everybody thought
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the dogs would be able to find them very quickly, but then the bad weather moved in and it became extremely muddy and the dogs lost the scent. >> that explains it. thank you so much. we'll keep everybody posted as we learn more. the one fugitive richard matt is dead. why major league baseball could be on the verge hitting a home run in the video streaming wars. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it.
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there is a major player in the media streaming industry talking about going public. it's major league baseball's technology division. they stream an abundance of sports and nonsports content including glen beck's blaze tv. wwe network and yes network. in talks with goldman sachs to discuss a possible ipo. joining us on the phone is the ceo of you stream and ed lee from rico. people in the industry have been talking about how sophisticated mlb technology is. how much more widely distributed could it become? >> every tv network wants to
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have a nice streaming option to go online. mlb is a potential partner for these guys. they already do it for hbo. their new over the top web streaming service. they've while. so yeah they've been doing it long enough that they've built up a lot of expertise, a lot of goodwill, good marketing i guess you could say. and they've become the go-to guys. so all the tv networks out there are potential partners for that. >> the go-to guys. brad, you disagree? >> they've certainly done a fantastic job with premium content. it's a tremendous data point i think for all the video space that a company's able to build a business model that's actually then going to go public. and you know just another tremendous data point that future tv might not be in your cable box, it's probably through your internet connection. >> in that sense it's good for your business. what about the competitive threat? what do you say to people who might be looking at ustream or mlb's technology? >> well we certainly have some overlap in terms of the media
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space. but this isn't just about sports this industry right? ustream is really focused increasingly on the enterprise space as well which is not a space that they play in. we help companies and corporations do similar things that media companies are doing with video. there is some competitive overlap but there's enough areas where we're playing differently. this is really a massive space overall. >> ed, what do you think the competitive edge is here for the mlb's technology? >> they've got experience doing it, as i said earlier, and they've got a proven track record. i think at the same time though, to brad's point it's a really competitive landscape. it's only going to get more competitive. amazon for that matter, they do a lot of cloud services back end services for a lot of companies, they could very well jump in and offer a competing service if they wanted to. so even with their backing, even with mlb's experience i don't really know it's going to be tough going ahead. and to be honest i don't really understand the idea of spinning off and going public.
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this doesn't prevent them from still securing agreements or doing joint ventures. they don't need to go public to do that. if they want to raise money they could probably just go raise money. the technology is really sort of sought after. so even the ipo i think it's just more of a consideration for them, not necessarily a definite plan. >> my question i guess for ed or brad was is this really just a negotiating ploy? i mean we're read tlug this stuff. a lot of this has to do with the rights to stream the baseball games and there's obviously competition for the straemg rights, and it was unclear to me whether or not this was not just some giant negotiating ploy for the major league baseball in fact to secure some future revenue streams. >> brad -- or ed go ahead, i'm sorry. >> it's a great question. it's a great point. it looks like what they're trying to do is just spin out the technology portion, not necessarily all the rights streaming rights that they have whether it's with mlb or other networks or other sports
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franchises. that is the more valuable part of it. but if they do spin it out it's just the tech portion, meaning the software. and it doesn't come with those rights, which as i said are more valuable. i think that's a distinction that still needs to be cleared up in terms of if they are going to go ahead with this. >> would you echo, that brad before we go? >> yeah. i think that's probably accurate. certainly mlb, you know built their technology first based on the asset that they had, which was major league baseball. they built that on the systems and the capabilities focused on that. and it certainly has given them a competitive advantage in the marketplace to quickly integrate it with these other major networks. when you're pitching some other networks that might be competitive and some other sports leagues having done it for major league baseball, it gives them a competitive advantage but that being said the point earlier, there's a lot of competition. there's a lot of big players entering the space. we're talking about the future of television. there's certainly not going to be a lack of capital. >> appreciate your perspectives
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this afternoon. brad hunstable from ustream and ed lee from re/code. two rival self-driving cars had a near accident on a silicon valley road after one cut the other off. sounds a lot like human drivers. we'll have the details on that driverless car debacle next.
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so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.
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well if you think driverless cars can't get involved in a little road rage think again. earlier this week a delphi driverless vehicle was getting ready to change lanes when it was reportedly cut off by a google self-driving prototype leading it to boort that action. we reached out and both companies told us in this instance the cars did exactly what they were supposed to do. but i turn now to the panel of course for any thoughts on what this means for this technology. >> my wife works for google. >> you don't have document on it. >> i'm going to say i'm a little biased in this. i think delphi's looking for a little marketing. a little marketing ploy to get that story out there. >> you raise an interesting point. not many people actually know that delphi who we last heard about a lot in the media around the financial crisis and the car industry bailout-s one of the four -- at the forefronts, the vanguard of this driverless car technology. >> maybe -- i'm not a
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conspiracialist. but maybe there was a little -- fine google car and get into a near can't. . >> there wasn't actually a crash. there was a person behind at least one of the cars making sure there was a backstop and they didn't crash. >> we've got to send you out west. you've got to get into these driver's cars. >> you don't have to go out west. you can go to carnegie mellon michigan, you go to ward washington, d.c. you can go to europe. >> but if you want to get involved in a near accident you have to go to silicon valley. >> yes, they avoid aid collision but why did it happen in the first place. if the whole point of this technology is to be extremely overaware of the environment around you how did one cut the other off? >> technology not calibrated close enough. i don't know. i don't really understand. there's lasers apparently involved in this and all sorts of software and sensors. it's confusing. but i'm grad they didn't ultimately crash. and there was a person, there was a backstop, which perhaps we would need for some time, to
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have someone behind the wheel, maybe you don't have to touch it but you're there in case. >> we do know there's going to be more transparency on what's happening on these roadways regardless 37 google is reporting its own statistics letting people come to its own conclusions about how safe this technology is. have you rid nain driverless car? >> no. but i drove yesterday with my daughter. the first time out with her learn learner's permit. and i told you, these driverless cars cannot come fast enough. that's a terrifying experience. i'd much rather get tone a driverless car than in a car with my daughter. >> there's also going to be nuances before we go full driverless. in fact, vehicle to vehicle communications is one area we're going to start seeing those transmissions happen within a couple of years' time for all car models. so there could be some additional levels of protection built in. >> it's going to take a little longer. >> hopefully, you will have moved on to bigger and better things by the time this driverless car becomes a reality. >> cnbc's "closing bell." >> no way. >> she's going to go to the very top of wherever -- >> to the back of a driverless car if i'm so lucky. thank you so much for joining us this afternoon. courtney, evan really
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appreciate it. have a great weekend. that does it for us on "closing bell." "fast money" begins in moments. sarah eisen in for melissa lee. >> we're going to talk to the ebay bull turned bear just lowered the price. that's why ebay went down today. >> great story. straight over to you guys. >> "fast money" starts right now. live from the nasdaq marketsite overlooking new york's times square. i'm sarah eisen in for melissa lee. traders on the desk tim seymour, steve grasso brian kelly, and guy adami. tonight on "fast," china in bear market territory. now morgan stanley saying do not buy the dip. we'll tell you what it could mean for stocks here. plus good things come in small packages. why a few small cap stock picks could mean big gains for your portfolio. the names we're watching in the second half playbook. but first to the tech wreck that was the nasdaq. the index closing down the week. three-day losing streak finish the week. the


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